2021 New York Laws
PVH - Private Housing Finance
Article 12 - New York City Housing Development Corporation
654 - Powers of the Corporation.

§  654. Powers of the corporation. Except as otherwise limited by this
article, the corporation shall have power:
  1. To sue and be sued;
  2. To have a seal and alter the same at pleasure;
  3. To make  and  alter  by-laws  for  its  organization  and  internal
management  and,  subject to agreements with noteholders or bondholders,
to make rules and regulations governing the  use  of  its  property  and
facilities;
  4.  To  make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and  functions  under  this
article;
  5.  To  acquire, hold and dispose of real and/or personal property for
its corporate purposes;
  6. To appoint officers, agents and employees, prescribe  their  duties
and qualifications and fix their compensation, subject to the provisions
of  the  civil service law and the rules of the civil service commission
of the city;
  7. Subject to the provisions of  any  contract  with  noteholders  and
bondholders,  to  make  mortgage  loans, to participate with the city or
with one or more organizations mentioned  in  section  fifteen  of  this
chapter  in  making  mortgage loans and to undertake commitments to make
any such mortgage loans to housing companies, including  any  subsidiary
of  the  corporation, on the same terms and otherwise in accordance with
the provisions of article two of  this  chapter  governing  loans  by  a
municipality;
  * 7-a.  Subject to the provisions of any contract with noteholders and
bondholders, to make mortgage loans, to participate  with  the  city  or
with one or more organizations set forth in section one hundred eleven-a
of this chapter in making mortgage loans and to undertake commitments to
make  any such mortgage loans to redevelopment companies organized under
article five of this chapter;
  * NB (Effective until ruling by Internal Revenue Service)
  * 7-a. Subject to the provisions of any contract with noteholders  and
bondholders,  to  make  mortgage  loans, to participate with the city or
with one or more organizations set forth in sections eighty-one and  one
hundred  eleven-a  of  this  chapter  in  making  mortgage  loans and to
undertake   commitments   to   make   any   such   mortgage   loans   to
limited-dividend  housing companies organized under article four of this
chapter and to redevelopment companies organized under article  five  of
this  chapter.  Such  mortgage loans may be made to limited-dividend and
redevelopment companies for such purposes as  may  be  approved  by  the
corporation  including,  but  not  limited  to,  the  refinancing of the
existing mortgage indebtedness of such companies, to provide  funds  for
the  replacement, improvement and rehabilitation of the properties owned
by said companies, to provide funds  for  all  costs  incurred  by  such
companies   relating   to  the  refinancing  of  the  existing  mortgage
indebtedness including amounts required to  establish  escrow  accounts,
reserves  and  working  capital as determined by the corporation and for
such other purposes as are permitted by articles four and five  of  this
chapter;  provided,  however,  such  purposes  must  be  approved by the
Federal Internal Revenue Service for application of  the  tax  exemption
for  housing  bonds.  Such mortgage loans may be made by the corporation
without any requirement that all or any portion of the loan be  used  to
create  new  or  rehabilitated housing facilities. In furtherance of its
powers pursuant to this subdivision and, subject to  the  provisions  of
any  contract  with  noteholders  and  bondholders,  the corporation may
acquire and  contract  to  acquire,  by  assignment  or  otherwise,  any
mortgage  securing  a  loan  and  any  related  bond  or  note made by a

limited-dividend housing company or  a  redevelopment  company  and  may
modify  or  satisfy  such  mortgage and accept or make a new mortgage or
mortgages and execute such other instruments as the corporation deems to
be necessary or proper.
  * NB (Effective pending ruling by Internal Revenue Service)
  8.  Subject  to  the  provisions  of any contract with noteholders and
bondholders,  to  make  mortgage  loans  including   participation   and
investment with the city or with one or more corporations, organizations
or  individuals  of  the kind mentioned in section four hundred seven of
this chapter in making mortgage loans and to  undertake  commitments  to
make  mortgage loans to owners of existing multiple dwellings, including
any subsidiary of the corporation, on the same terms  and  otherwise  in
accordance  with the provisions of article eight of this chapter, except
that such loans shall in all cases be secured by a first lien;
  8-a. Subject to the provisions of any  contract  with  noteholders  or
bondholders,  to  participate  with  the  city  or  one  or more private
investors as defined in section eight hundred one  of  this  chapter  or
with  the city and one or more such private investors in making loans in
accordance with the provisions of article fifteen of this chapter.
  9. Subject to the provisions of  any  contract  with  noteholders  and
bondholders,  to  sell, at public or private sale, any mortgage or other
obligation securing a mortgage loan made by the corporation;
  10. Subject to the provisions of any  contract  with  noteholders  and
bondholders,  in  connection  with  the  making  of  mortgage  loans and
commitments therefor,  to  make  and  collect  such  fees  and  charges,
including  but not limited to reimbursement of all costs of financing by
the  corporation,  service  charges  and  insurance  premiums,  as   the
corporation shall determine to be reasonable;
  11.  Subject  to  the  provisions of any contract with noteholders and
bondholders, to consent to the modification, with  respect  to  rate  of
interest,  time  of payment of any installment of principal or interest,
security, or any other term, of any mortgage,  mortgage  loan,  mortgage
loan  commitment,  contract  or  agreement  of  any  kind  to  which the
corporation is a party;
  12. To foreclose any mortgage in default or  commence  any  action  to
protect  or  enforce  any  right conferred upon it by any law, mortgage,
contract or other agreement, and to bid for and purchase  such  property
at  any  foreclosure or at any other sale, or acquire or take possession
of any such property; and in such event the  corporation  may  complete,
administer,  pay  the  principal  of  and  interest  on  any obligations
incurred in connection with such property,  dispose  of,  and  otherwise
deal  with,  such  property,  in  such  manner  as  may  be necessary or
desirable to protect the interests of the corporation therein;
  12-a. To create subsidiaries,  as  provided  in  section  six  hundred
fifty-four-a of this chapter.
  13.  To  borrow  money and to issue negotiable notes or bonds or other
obligations and to fund or refund the  same,  and  to  provide  for  the
rights of the holders of its obligations;
  14.  To  invest  any  funds  held in reserves or sinking funds, or any
funds not required for immediate use or disbursement, at the  discretion
of  the  corporation,  in  obligations  of  the  city,  state or federal
government,  obligations  the  principal  and  interest  of  which   are
guaranteed  by  the  city,  state  or federal government, obligations of
agencies of the federal government  which  may  from  time  to  time  be
legally  purchased by savings banks of the state as investments of funds
belonging  to  them  or  in  their  control  and  be  approved  by   the
comptroller,  obligations  in  which the comptroller of the state of New
York is authorized to invest pursuant to  section  ninety-eight  of  the

state  finance  law,  obligations  of  the New York city municipal water
finance authority, participation certificates of the federal  home  loan
mortgage  corporation  or  mortgage-backed  securities  of  the  federal
national mortgage association.
  15.  Subject  to  the  provisions of any contract with noteholders and
bondholders and  subject  to  the  provisions  of  section  six  hundred
fifty-five   of  this  article,  to  purchase  notes  or  bonds  of  the
corporation;
  16. To procure insurance against  any  loss  in  connection  with  its
property and other assets including mortgages and mortgage loans in such
amounts and from such insurers as it deems desirable;
  17.  To  engage  the  services  of consultants on a contract basis for
rendering professional and technical assistance and  advice;  and  where
the  corporation  shall join with one or more organizations mentioned in
section fifteen, one hundred eleven-a or  four  hundred  seven  of  this
chapter  in  making  mortgage  loans,  to  make provision, either in the
mortgage or mortgages or by separate agreement, for the  performance  of
such  services  as  are generally performed by a banking organization or
insurance company which itself owns and holds a mortgage or by a trustee
under a trust mortgage, and to consent to the appointment of  a  banking
organization to act in such capacity;
  18.  To  contract  for  and  to accept any gifts or grants or loans of
funds or property or fees for administering any federal  rental  subsidy
contract  or  financial  or  other  aid  in  any form, including but not
limited to mortgage insurance, from the federal government or any agency
or  instrumentality  thereof,  or  from  the  state  or  any  agency  or
instrumentality thereof, or from any other source and to comply, subject
to  the  provisions  of  this  article,  with  the  terms and conditions
thereof;
  19. As security for the payment of the principal of  and  interest  on
any  bonds so issued and any agreements made in connection therewith, to
pledge all or any part of its revenues;
  20. Notwithstanding the provisions of this chapter  or  of  any  other
law, general, special or local, whenever the corporation shall find that
the  maximum  rentals  charged  tenants  of the dwellings in any project
financed by the corporation in whole or in part shall not be sufficient,
together with  all  other  income  of  the  mortgagor,  to  meet  within
reasonable  limits all necessary payments to be made by the mortgagor of
all expenses  including  fixed  charges,  sinking  funds,  reserves  and
dividends,  to  request  the  mortgagor  to make application to vary the
rental rate for such dwellings so as to secure  sufficient  income,  and
upon  failure  of  the  mortgagor to take such action within thirty days
after receipt of written request from  the  corporation  to  do  so,  to
request  the  supervising  agency  to take action upon such agency's own
motion so to vary such rental rate, and upon failure of the  supervising
agency  either  upon application by the mortgagor or upon its own motion
so to vary such rental rate within sixty days after receipt  of  written
request  from  the  corporation  to  do  so, to vary such rental rate by
action of the corporation;
  21. Subject to the provisions of any  contract  with  noteholders  and
bondholders,  to  acquire  and  to contract to acquire, by assignment or
otherwise, or to take as collateral security, any  mortgage  securing  a
loan,  including  any construction loan, and any note or bond evidencing
indebtedness thereon, made by the city of New York  in  accordance  with
the  provisions  of  article  two  of  this  chapter and any contract or
arrangement, including any subsidy contract or arrangement,  related  to
such mortgage, and the receipts to be derived from any of the foregoing,
and  to  assume  and  fulfill  and  contract  to  assume and fulfill the

obligations of the mortgagee or lender thereunder, and to  reassign  and
to contract to reassign to the city of New York any such mortgage, note,
bond, contract or arrangement and the receipts to be derived therefrom.
  22.  Subject  to  the  provisions of any contract with noteholders and
bondholders, to assign or pledge any  mortgage,  bond,  note,  contract,
security,  or arrangement and the receipts to be derived from any of the
foregoing, acquired pursuant to this section;
  22-a. Subject to the provisions of any contract with  noteholders  and
bondholders,  to  acquire  and  to contract to acquire, by assignment or
otherwise, any mortgage securing  a  loan,  including  any  construction
loan,  and any note or bond evidencing indebtedness thereon, made by the
city of New York in accordance with the provisions  of  article  two  of
this  chapter  and  any  contract  or arrangement, including any subsidy
contract or arrangement, related to such mortgage, and to modify  or  to
satisfy such mortgage and accept or make a new mortgage or mortgages and
other  instruments,  including mortgages to secure residual indebtedness
and instruments to evidence residual receipts obligations as defined  in
section  twelve of this law and to enter into amended subsidy contracts,
and (i) to hold or to sell, assign or otherwise dispose of such mortgage
or mortgages, including those  made  in  substitution  thereof  and  any
related instruments, contracts and arrangements, or to issue obligations
secured  by  such mortgage or mortgages, and pay to the city of New York
the proceeds of such sale,  assignment  or  other  disposition  of  such
mortgages  and  the proceeds from the issuance of such obligations, less
legal and other fees, costs and  expenses  and  other  amounts  paid  or
incurred  by the corporation, including discounts, costs incurred by the
corporation related to the sale of such mortgages or to a sale, if  any,
of  its  obligations, fees payable to other governmental units, the cost
incurred  by  the  corporation  under  an  agreement  with  the  federal
government pursuant to subdivision twenty-two-b of this section, amounts
required  to  establish  escrow accounts or reserves for the issuance of
mortgage  insurance,  the  cost  of  satisfying  such  minimum  property
standards  or  of installing such life safety devices as may be required
by the federal government which standards or devices are in addition  to
any  requirement  imposed  by the city of New York as mortgagee, amounts
loaned to the mortgagor to establish such escrow accounts or reserves or
to satisfy such minimum property  standards  or  to  install  such  life
safety  devices,  closing  and other costs related to obtaining mortgage
insurance from the federal government such other costs  as  the  federal
government  may  from  time  to  time impose, any amounts not previously
advanced under mortgages modified or satisfied under this subdivision as
determined by the supervising agency, and an amount not to exceed twenty
million dollars at any one time, which shall  be  held  in  a  revolving
account  for a period not to exceed eighteen months from the time of the
first deposit therein, to pay any or all of the costs, fees and expenses
and other amounts attributable to issuing obligations  secured  by  such
mortgage  or  mortgages, or to making and insuring mortgages pursuant to
this subdivision, and any balance remaining in  such  revolving  account
shall  be  paid  to  the  city of New York no later than eighteen months
after the time of the first deposit  therein,  and  (ii)  to  assign  or
reassign  any  such  mortgage  or  mortgages,  instruments  and  related
contract or arrangement to the city of  New  York.  If  the  corporation
sells any such mortgages for an amount in excess of the principal amount
thereof  at  the  time  of  such  sale,  or  if  the  corporation issues
obligations secured  by  any  such  mortgages  and  the  yield  on  such
mortgages  is  greater  than the yield on such obligations (the yield on
such mortgages and obligations having been calculated in accordance with
section one hundred three of the internal revenue  code  of  the  United

States  and  regulations  thereunder),  the corporation shall pay to the
city of New York such premium and any such differential, but only to the
extent such differential is not paid  to  or  for  the  benefit  of  the
holders  of  such obligations; and such premium and differential, to the
extent so paid to such city, shall be used and credited by the  city  of
New York in accordance with subdivision four-b of section twenty-three-a
of  this  chapter as if such city had sold such mortgages or issued such
obligations pursuant to section  twenty-three-a  of  this  chapter.  The
corporation  shall  not  modify  or  satisfy a mortgage pursuant to this
subdivision unless such modification or satisfaction is  first  approved
by the supervising agency.
  22-b.  To  contract with the federal government for the sharing of any
claim paid by the federal government on account of any  insurance  of  a
mortgage,  provided that the corporation's share of any such claim shall
not exceed fifty percent of the insurance benefits paid by  the  federal
government,  and  further  provided that the corporation's share of such
claims under any such contract shall not  exceed  five  percent  of  the
outstanding  principal  amount  of all mortgage loans of the corporation
insured by the federal government and included within such contract.
  23. To make loans secured by mortgages insured  or  coinsured  by  the
federal  government  to the owners of multiple dwellings in such amounts
as may be required for the rehabilitation of such multiple dwellings or,
if such owner acquires the multiple dwelling for  the  purpose  of  such
rehabilitation  or  owns the multiple dwelling subject to an outstanding
indebtedness, in such amounts as may be required for the  cost  of  such
acquisition or for the refinancing of such outstanding indebtedness, but
in  no event in such amounts as would exceed the mortgage limits imposed
by the federal government, and to regulate or restrict such owner as  to
rents or sales, charges, capital structure, rate of return and method of
operation and to make loans secured by mortgages insured or coinsured by
the  federal government to the owners of projects in such amounts as may
be required for the acquisition, construction  or  improvement  of  such
projects,  but  in no event in such amounts as would exceed the mortgage
limits imposed by the federal  government,  or  ninety  percent  of  the
actual  cost of such acquisition, construction or improvement, whichever
is less, and to regulate or restrict such owner as to  rents  or  sales,
charges,  capital structure, rate of return and method of operation. The
owner may, with the approval of the corporation, fix maximum rentals  to
be  charged tenants of the dwellings in any multiple dwelling or project
aided by a loan pursuant to this subdivision. The corporation, upon  its
own  motion,  or  upon  application  by  the  owner  or  by  the federal
government, may vary such rental rate from time to time so as to secure,
together with all other income  of  the  multiple  dwelling,  sufficient
income for it to meet within reasonable limits all necessary payments to
be  made  by  the owner of all expenses; provided that no variation in a
rental  rate  shall  be  effective  unless  approved  by   the   federal
government.  The  corporation  or the department of housing preservation
and development shall notify occupants  of  the  multiple  dwelling,  if
there  be  any, of the contemplated rehabilitation and shall advise them
of  the  expected  rental  increase   to   result   therefrom,   and   a
representative   of   the  corporation  or  the  department  of  housing
preservation and development shall meet or offer to meet at  least  once
with  the  occupants.  The  corporation  shall promulgate such rules and
regulations with respect to multiple  dwellings  and  projects  financed
pursuant  to  this subdivision and the owners of such multiple dwellings
and projects as may be necessary to carry out  the  provisions  of  this
subdivision,  provided  that  such  rules  and regulations shall contain
provisions as to income limitations relating to admission into occupancy

of the dwelling units of  such  projects  to  the  same  effect  as  are
contained  in  section  thirty-one  of this chapter and for the dwelling
units of such other  multiple  dwellings  to  the  same  effect  as  are
contained  in  subdivision  three  of  section  four hundred one of this
chapter. As used in this subdivision, the term "multiple dwelling" shall
include an existing building or structure which is to be converted  into
a class A multiple dwelling.
  23-a.  Subject  to the provisions of any contract with noteholders and
bondholders, (i) to make and contract for the making of  mortgage  loans
for  the  construction  or rehabilitation of projects which the New York
city housing authority has agreed to purchase  on  a  turnkey  basis  in
accordance  with  a  federally  assisted  program  for the production of
public housing as  authorized  by  the  United  States  housing  act  of
nineteen  hundred  thirty-seven  as  amended to the date of enactment of
this  subdivision  of  this  section,  upon  the  completion   of   such
construction or rehabilitation, and (ii) to make and to contract for the
making  of loans to, or to purchase loans from, banking or other lending
institutions  for  the  purpose  of  financing  such   construction   or
rehabilitation.
  23-b.  In  order  to  increase  the  availability of safe and sanitary
dwelling accommodations within  the  financial  reach  of  families  and
persons  of  low  income,  to  acquire  and  to  contract to acquire, by
assignment  or  otherwise,  or  to  take  as  collateral  security,  any
federally  guaranteed  security  evidencing  indebtedness  on a mortgage
securing a loan, including any construction loan, and the receipts to be
derived therefrom and to assign or reassign and to contract to assign or
reassign any such security and the receipts  to  be  derived  therefrom,
subject in each case, to the provisions of any contract with noteholders
and bondholders;
  * 23-c. (1) Subject to the provisions of any contract with noteholders
and bondholders (a) to make and contract for the making of loans for the
acquisition,  construction  or  rehabilitation of housing accommodations
containing five or more dwelling units (i) for the purpose of  providing
housing  accommodations  for  occupancy by persons and families for whom
the ordinary operations of private enterprise cannot provide an adequate
supply of safe, sanitary and affordable housing accommodations  or  (ii)
for  units located in an area designated as blighted pursuant to article
fifteen or sixteen of the general municipal law, or as certified by  the
New  York  city  department  of  housing preservation and development as
being located in an area which is blighted,  and  (b)  to  make  and  to
contract  for  the  making of loans to or to purchase loans from lending
institutions for the  purpose  of  financing  mortgage  loans  for  such
acquisition,  construction  or rehabilitation, and (c) to establish such
regulatory requirements with regard to such  housing  accommodations  as
may  be  deemed appropriate by the corporation to achieve the objectives
of this article,  and  articles  fifteen  and  sixteen  of  the  general
municipal  law  notwithstanding  any other provisions of this chapter to
the contrary. Any notes and bonds issued pursuant  to  this  subdivision
shall not be secured by any capital reserve fund established pursuant to
section six hundred fifty-six of this article.
  (2)  With  regard  to  any  loan made pursuant to this subdivision and
notwithstanding  the  provisions  of,  or  any  regulation   promulgated
pursuant to, the emergency housing rent control law, the local emergency
housing  rent  control  act,  or local law enacted pursuant thereto, the
rent stablization law of nineteen hundred sixty-nine, or  the  emergency
tenant  protection  act of nineteen seventy-four, the owner of a project
otherwise subject to any such law or  act,  with  the  approval  of  the
agency,  shall  establish the initial rent for each dwelling unit within

the project. The corporation shall notify occupants of the  project,  if
any,  of  any  such  proposed  rental establishment and offer to meet at
least once with the occupants prior to its approval.
  (3)  The  powers  granted by this subdivision may be exercised only if
(a) obligations of the corporation have been issued  to  fund  the  loan
made  or purchased by the corporation and such obligations have received
an investment grade rating from a recognized rating agency; (b) the loan
made or purchased by the corporation is fully secured  as  to  principal
and  interest by insurance or a commitment to insure by the state of New
York mortgage agency or New York  city  residential  mortgage  insurance
corporation  or  by  the  general credit of a bank, national bank, trust
company, savings bank, savings and loan association, insurance  company,
governmental agency of the United States, or any combination thereof; or
(c)  obligations  of  the  corporation are purchased by a bank, national
bank,  trust  company,  savings  bank,  savings  and  loan  association,
insurance  company,  governmental agency of the United States, which for
purposes of this subdivision, include the  federal  home  loan  mortgage
corporation, the federal national mortgage association, the governmental
national  mortgage  association,  and any successor of the foregoing, or
any wholly-owned subsidiary or combination thereof.
  * NB Repealed July 23, 2023
  23-d. To and shall develop, promote and ensure that,  where  possible,
minority  groups  which traditionally have been disadvantaged, and women
are  afforded  equal  opportunity  for  contracts  in  connection   with
development  and construction contracts for developments, facilities and
projects financed by the issuance of bonds, notes and other  obligations
of the corporation.
  23-e.  Subject  to the provisions of any contract with noteholders and
bondholders, to refinance or acquire mortgage loans  made  for  multiple
dwellings  by  private lenders pursuant to article eight-A or fifteen of
this chapter; provided that  the  corporation  shall  not  be  permitted
pursuant  to  this  subdivision  to acquire a mortgage loan, unless such
acquisition is in connection with a  refinancing  of  the  property  for
which such mortgage loan was made.
  23-f.  To  service  mortgage  loans  made  by  private or governmental
lenders for multiple dwellings, provided that each  such  mortgage  loan
shall  have  been  made  either (i) pursuant to this chapter, or (ii) in
conjunction with another mortgage loan made by the city of New York.
  23-g. Subject to the provisions of any contract with  noteholders  and
bondholders,  to  acquire  mortgage  loans  made by the city of New York
pursuant to article eight-A of this chapter or section ninety-nine-h  or
article   sixteen   of  the  general  municipal  law  or  to  acquire  a
participation interest in such mortgage loans.
  23-h. Subject to the provisions of any contract with  noteholders  and
bondholders   and   relating   to   the  purpose  of  providing  housing
accommodations for occupancy  by  persons  and  families  for  whom  the
ordinary  operations  of  private  enterprise cannot provide an adequate
supply of safe, sanitary and affordable housing  accommodations  or  for
units  located  in  an  area  designated as blighted pursuant to article
fifteen or sixteen of the general municipal law, or as certified by  the
New  York  city  department  of  housing preservation and development as
being located in an area that is blighted,  the  corporation  is  hereby
authorized to carry out, by loans or guaranties, the following purposes:
  (i)  to  preserve,  repair,  renovate,  upgrade,  improve,  modernize,
rehabilitate  or  otherwise  prolong  the  useful   life   of   dwelling
accommodations;
  (ii)   to   construct   dwelling  accommodations  and  undertake  site
preparation related thereto;
  (iii) to restore abandoned, vacant or occupied city or privately-owned
dwelling accommodations to habitable condition;
  (iv)  to  assist  in  the acquisition of buildings that contain or are
expected to contain dwelling accommodations; and
  (v) to facilitate the disposition of city-owned buildings that contain
or are expected to contain dwelling accommodations.
  24. To contract with any of its subsidiary corporations to render such
services as such subsidiary corporation may request, including, but  not
limited  to, the use of the premises, personnel and personal property of
the corporation, and to provide for  reimbursement  to  the  corporation
from  such  subsidiary corporation for any expenses necessarily incurred
by the corporation in carrying out the terms of any such contract.
  25. To do any and all things necessary or convenient to carry out  its
purposes  and  exercise  the  powers expressly given and granted in this
article.